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GuruFocus has detected 5 Warning Signs with Allergan PLC $AGN.
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Allergan PLC (NYSE:AGN)
Cash Flow from Operations
$3,064 Mil (TTM As of Sep. 2016)

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

For the three months ended in Sep. 2016, Allergan PLC's Net Income From Continuing Operations was $15,222 Mil. Its DDA was $1,650 Mil. Its Change In Working Capital was $460 Mil. Its cash flow from deferred tax was $-190 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $81 Mil. And its Cash Flow from Others was $-18,315 Mil. In all, Allergan PLC's Cash Flow from Operations for the three months ended in Sep. 2016 was $-1,092 Mil.


Definition

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

Allergan PLC's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

Allergan PLC's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

Allergan PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 1555.5 (Dec. 2015 ) + 1218.5 (Mar. 2016 ) + 1382.5 (Jun. 2016 ) + -1092.4 (Sep. 2016 ) = $3,064 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

Cash flow from operations contains six items:

1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.

Allergan PLC's net income from continuing operations for the three months ended in Sep. 2016 was $15,222 Mil.

2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
• The term “depreciation” is used when discussing man made tangible assets
• The term “depletion” is used when discussing natural tangible assets
• The term “amortization” is used when discussing intangible assets

Allergan PLC's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $1,650 Mil.

3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.

Allergan PLC's change in working capital for the three months ended in Sep. 2016 was $460 Mil. It means Allergan PLC's working capital increased by $460 Mil from Jun. 2016 to Sep. 2016 .

4. Deferred Tax:
It is the cash flow generated from deferred tax.

Allergan PLC's cash flow from deferred tax for the three months ended in Sep. 2016 was $-190 Mil.

5. Cash Flow from Discontinued Operations:
Cash received by a company that comes from the sale of part of business.

Allergan PLC's cash flow from discontinued operations for the three months ended in Sep. 2016 was $0 Mil.

6. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.

Allergan PLC's stock based compensation for the three months ended in Sep. 2016 was $81 Mil.

7. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).

Allergan PLC's cash flow from others for the three months ended in Sep. 2016 was $-18,315 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, Stock Based Compensation, Cash Flow from Others, Cash Flow from Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Allergan PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 14123822218325998-750-1,6313,919-935
CF_DDA 2541711892824485791,0452,8285,9956,470
ChangeInWorkingCapital -18-37-8789-124-80-164-432-1,2720
CF_DeferredTax -64-19-118-127-221-275-690-7,3800
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1419192440491343686900
Cash Flow from Others 4223531121372411,2241,7992,577-5,534
Cash Flow from Operations 4274173775716326661,2142,2434,5301

Allergan PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations -1,043-733-512-2425,303-629256-50015,222-40
CF_DDA 9389389831,7491,6451,6191,6341,6701,6501,639
ChangeInWorkingCapital -9122-422-783152-219-358-4024600
CF_DeferredTax -261-278-304-285-6,88291-519192-1900
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 2281092261751101809990810
Cash Flow from Others 751753556787720515106333-18,315-1,599
Cash Flow from Operations 5228125251,4011,0481,5561,2191,383-1,092-0
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